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Mortgage Loans

We offer all types of mortgage loans designed to fit any need and goals, all with personalized service and attention to detail. Meet in-person with any of our experienced mortgage officers or we're happy to help you via phone, email, or virtual meeting!

Choose your preferred loan type in the application, or we'll help find the best option for you!  Check Rates, Learn More or Apply Online

Sarah HerschlagSarah Herschlag
NMLS #510198
6832 Stalter Dr.
Rockford, IL 61108

Sarah's site

Sandy FedericiSandy Federici
NMLS #510196
230 W. Monroe 2850
Chicago, IL 60606

Sandy's site

Lindsey SwansonLindsey Swanson
NMLS #942001
6832 Stalter Dr.
Rockford, IL 61108

Lindsey's site

Kristina TruaxKristina Truax
NMLS #1203051
6832 Stalter Dr.
Rockford, IL 61108

Kristina's site

We offer the following types of mortgage loans: 

Conventional Fixed-Rate Mortgage Loans

  • Great for any home buyer
  • Rate is fixed over the life of the loan
  • Custom terms from 10 to 30 years
  • 3% to 5% minimum down payment
  • Private Mortgage Insurance (PMI) required with less than 20% down
  • Minimum credit score of 620
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Great for purchase or refinancing

FHA Fixed-Rate Mortgage Loans

  • For first-time or repeat home buyers
  • Rate is fixed over the life of the loan
  • 3.5% minimum down payment
  • 1.75% Upfront and monthly PMI required. Lower PMI with down payment of at least 10%.
  • Minimum credit score of 580
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Insured by the Federal Housing Administration

VA Fixed-Rate Mortgage Loans

  • For eligible veterans, reservists, active-duty personnel, or surviving spouses
  • Rate is fixed over the life of the loan
  • Can be used multiple times
  • No down payment or PMI required
  • Low closing costs 
  • Minimum credit score of 580
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Great for purchase or refinancing
  • Insured by the the U.S. Department of Veterans Affairs 

Jumbo Mortgage Loans

  • For loan amounts over $766,5501
  • 15 and 30 year terms available
  • Fixed or adjustable rate options
  • Flexible down payment
  • PMI required
  • Low closing costs
  • Owner-occupied 1-2 units
  • 43% maximum debt-to-income ratio 
  • 6 months of mortgage payments must be held in reserves 
  • Minimum credit score of 720
  • Great for purchase or refinancing

HomeReady® Mortgage Loans

  • Designed to help serve today’s credit-worthy lower-income borrowers
  • For first-time or repeat home buyers
  • Terms between 10 and 30 years 
  • Fixed or adjustable rate options 
  • 3% minimum down payment
  • Lower PMI required 
  • Minimum credit score of 620
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Great for purchase or refinancing
  • Homeownership education course may be required

Physician Mortgage Loans

  • Available to physicians and residents with an MD, DO, DMD, DVMM, or DDS degree and an employment contract2
  • 15 and 30 year terms available
  • Fixed or adjustable rate options 
  • No down payment2 
  • No prepayment penalty
  • No PMI on loans up to $1,000,000; loan amounts up to $2,000,000 available 
  • Minimum credit score of 680
  • 50% maximum debt-to-income ratio 
  • Great for purchase or refinancing
  • Primary residence only 
  • Contact us for more information

USDA Fixed-Rate Mortgage Loans

  • Available only in certain rural areas
  • Rate is fixed over the life of the loan
  • 15 or 30 year terms 
  • No down payment
  • Low PMI required
  • Minimum credit score of 620

Portfolio Mortgage Loans

  • Your loan remains with FNCU
  • Great option for non-warrantable condos, prior financial struggles, and other unique situations 
  • Custom terms from 10 to 30 years
  • Fixed or adjustable rate options 
  • 15% minimum down payment
  • No PMI required 
  • Flexible minimum credit score

Conventional Adjustable Rate Mortgage Loans (ARMs)

  • Custom terms from 10 to 30 years
  • Lower initial interest rate than most fixed-rate loans
  • Rates are fixed for an initial time period such as 1, 3, 5, or 7 years. Then, rates can increase or decrease annually, tied to changes in the Index Rate
  • We offer adjustment and lifetime interest-rate caps to limit the rate increase/decrease from one adjustment period to the next and which limit the rate increase over the life of the loan
  • No negative amortization or pre-payment penalties
  • 3% to 5% minimum down payment
  • PMI required with less than 20% down
  • Minimum credit score of 620 for Conventional ARM (or we have other options)
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance

Down Payment Assistance Programs

The following programs can be used in addition to your mortgage loan, and may help save you money!

Since 2014, First Northern has partnered with the Illinois Housing Development Authority (IHDA) to offer members specialized homebuyer programs.  These programs are ideal for members wishing to buy a home that need extra flexibility or who have limited funds for down payment and/or closing costs, yet have the financial means to maintain monthly mortgage payments.

Opening Doors

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, forgiveable down payment assistance loan with no replayment unless sold or refinanced before the 5-year forgiveness period.
  • Down Payment Assistance Amount: $6,000

Learn More

IHDAccess Forgiveable

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, forgiveable down payment assistance loan with no replayment unless sold or refinanced before the 10-year forgiveness period.
  • Down Payment Assistance Amount: 4% of Purchase Price (up to a max of $6,000.00)

Learn More

IHDAccess Deferred

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, deferred down payment assistance loan. Payment is due when you sell or refinance.
  • Down Payment Assistance Amount: 5% of Purchase Price (up to a max of $7,500.00)

Learn More

IHDAccess Repayable

  • Available to First-Time and Non First-Time Homebuyers
  • A zero-interest repayable down payment assistance loan. Monthly payment is required.
  • Down Payment Assistance Amount: 10% of Purchase Price (up to a max of $10,000)

Learn More

Unsure if you qualify for one of these programs?

Contact our mortgage team and let them know you're interested in an IHDA Program: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly. 

 

DISCLAIMER: All program funding and availability is subject to change at any time, and is not guaranteed until the lender places a complete reservation with IHDA Mortgage. Potential borrowers must meet all applicable program guidelines and income/purchase price limits for the county the property is located in to be eligible. Detailed program guidelines and requirements can be found in the procedural guide posted in the IHDA Document Library. 

If you want to buy a home and have a steady income and good credit, First Northern Credit Union and the Federal Home Loan Bank of Chicago can help.

Downpayment Plus® is a program that provides down payment and closing cost assistance for income-eligible homebuyers. Through the Downpayment Plus Program*, up to $10,000 may be available to eligible homebuyers to use toward down payment and closing costs.

Homebuyers must meet income eligibility requirements and:

  • Contribute at least $1,000 to the purchase of the home
  • Complete pre-purchase homebuyer education and counseling
  • Live in the home as your primary residence

How does it work? 

  1. Contact our mortgage team: Downpayment Plus is offered by members of Federal Home Loan Bank of Chicago, including First Northern Credit Union. 
  2. Apply: We will collect applicable documentation and complete the Downpayment Plus application process on your behalf.
  3. Gain approval: We will work with the Federal Home Loan Bank of Chicago to review your application and eligibility. We can answer any questions you may have about the Downpayment Plus process, so you have a single, local point of contact—your Mortgage Loan Officer at First Northern.
  4. Prepare: After we have confirmed your Downpayment Plus grant reservation is in place, we will work with you to complete the required pre-purchase education and pre-purchase counseling.
  5. Purchase: Downpayment Plus funds can be used to help with your down payment, closing costs, and/or up to $500 of your homebuyer education and counseling costs if you meet eligibility requirements.  We can help you understand how Downpayment Plus will work with your specific home purchase and needs.
  6. Receive grant: The assistance is provided in the form of a forgivable grant paid on your behalf at the time that you close on mortgage financing with a participating Federal Home Loan Bank of Chicago member financial institution, including First Northern Credit Union. Grants are forgiven on a monthly basis over a five-year retention period.

Questions and want to know if you might qualify? 

Contact our mortgage team and let them know you're interested in our Downpayment Plus Program: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly. 

 

* Downpayment Plus is a program from the Federal Home Loan Bank of Chicago. Restrictions apply. Please see the Federal Home Loan Bank of Chicago’s website at www.fhlbc.com for complete requirements. “Downpayment Plus” is a registered trademark of the Federal Home Loan Bank of Chicago. 

Get into your new home and make lower monthly payments for the first 3 years with our 2-1-1 Temporary Interest Rate Buydown, in partnership with Fannie Mae. 

A 2-1-1 Temporary Interest Rate Buydown allows you to reduce your effective monthly payment for 3 years through a temporary buydown of the interest rate. Everyone is eligible to enroll for this program and enjoy this benefit! 

How does a 2-1-1 Temporary Interest Rate Buydown work?

  • In a 2-1-1 Temporary Interest Rate Buydown, the effective interest rate that you pay during the first 3 years of your mortgage is reduced as a result of the deposit of a lump sum of money (sometimes called a “subsidy”) into a buydown account at closing. The buydown funds may be provided by the borrower, lender, borrower’s employer, property seller, or other interested parties to the transaction. 
  • A portion of the subsidy is released each month during the first 3 years of your mortgage to reduce your payments.
  • At the end of the buydown period, the buydown funds collected at closing will have been exhausted, and the buydown period ends. See the example below for additional context.

2-1-1 Temporary Interest Rate Buydown Example

Year Interest Rate
1 4.00%
2 5.00%
3 5.00%
4-30 6.00%

Ready to learn more?

Contact our mortgage team and let them know you're interested in our 2-1-1 Buydown: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly. 

Choose your preferred loan type in the application, or we'll help find the best option for you!  Check Rates, Learn More or Apply Online

1 $766,550 is the 2024 loan amount threshold and subject to change 2 Proof of sufficient income or active employment contract with proof of sufficient income and reserves required. Minimum reserves required vary depending on amount of the loan. Maximum loan amount at 100% financing is $1,000,000. Higher loan amounts available.